Answer to Question #102149 in Microeconomics for vera maloku

Question

The company has purchased a new machine. It’s purchase price is
50.000 EUR.Transportation costs amounted to 8.000 EUR, the
installation costs were aditional 2.000 EUR. It is estimated a useful life
of the machine of 5 years. Please, calculate the annual depreciation with
the straight-line depreciation method!

Answer 1

Depreciation per annum,$Dpa = \frac{\text{Cost}− \text{Residual Value}}{\text{Useful Life}}$

$Dpa=\frac{60000- 50000}{5}$

Dpa= 2000EUR